Restraints on Transfer – Section 10
Section 10, condition restraining alienation — “Where property is transferred subject to a condition or limitation absolutely restraining the transferee or any person claiming under him from parting with or disposing of his interest in the property, the condition of limitation is void. Except in the case of lease where this condition is for the benefit of the lessor or those claiming under him: provided that property may be transferred to or for the benefit of woman (not being a Hindu, Mohammedan or Buddhist) so that she shall not have p transfer or charge the same for her beneficial interest therein”.

This is based on the general rule of jurisprudence “alienatio rei prae fertur juri accrescendi” that is to say that alienation is favoured by law rather than accumulation. This is general economic principal that there should be free circulation and disposition of property. An absolute restart is repugnant to the nature of the estate and is an exception to the very essence of the grant.
This section lays down that where property is transferred subject to a condition absolutely restraining the transferee from parting with his interest in the property, the condition is void. Thus, if a transfers his property to B with a condition that B shall never sell it, or shall sell it only to a particular person, the condition is void, and B any sell or not as he pleases. Here the sections Olovs that only the condition (restraining alienation) is void and not the transfer itself.
In Rosher v. Rosher, (1884) 26 Ch D 801, a person A made a gift of house to B with a condition that if B sold during the life-time of A’s wife, she should have an option to purchase it for Its. 10,000. The value of the house was Rs. 10,00,000. This was held to be a effect an absolute restraint and void.
When a property is transferred absolutely it must be transferred with all its legal incidents. Section 8 of the set also provides that unless different intention is expressed (or implied), a transfer of property passes forthwith to the transferee all the interest which the transferor is then capable of passing in the property and in the legal incidents thereof.

 Absolute and Partial Restriction
The conditions or limitation on alienation may d be either absolute or partial. Absolute restraints are declared void under Section 10, however partial restraints may be allowed.
Whether a condition amounts to a total or partial depends upon the substance, i.e., the real effect of the condition and not the form of words laying down the condition. An absolute restraint is one that takes away the power of alienation completely or substantially, whereas, partial restraint is one that imposes some restriction on the power of alienation but the tram is substantially free to alienate property in various ways. In Renand v. Tourangeaon, (1867). LR 2 PC 4, it was held that a condition that transferee shall not transfer the property for a period of twenty years is an absolute restriction and thus void. If it were a condition that transferee shall not transfer the property for a period of 3 years, it would be a partial restraint and thus valid.
Illustrations]
(i) A condition that transferee shall not transfer the property by way of gift, is a partial restraint and thus valid.

(ii)  A condition that transferee shall not transfer the property family/or to a particular person only, is a partial restraint and thus valid.
On the other hand, if a transferor A transferred a filed to transferred B, with a condition that if he sold it he must sell to C (A particular person) and nobody else. The restriction was held to be absolute and thus void.

(iii) A stipulation in a sale-deed that the vendee could sell-back the property to the vendor only, and to no one else, is more than a mere partial restraint, and thus invalid.

(iv)  A compromise by way of settlement of family disputes has been held to be valid, although it involves an agreement in restraint of alienation.

In Mata Prasad v. Nageshera Sahal, (1925) 47 All 884, a dispute relating to succession between a widow and the nephew was compromised on terms that the widow was to retain possession for life while the title of the nephew was admitted with a condition restraining him from alienating during her life-time. The compromise was held to be valid.
Exceptions:
Lease: When the condition is for the benefit of the lessor or those claiming under him, it will be valid. Thus a condition in lease that the lessee should not sublet or assign is valid. The logic behind this exception is that landlord should be free to choose the person who shall be in possession of his land.
Marriage woman: A condition restraining alienation may be imposed when the property is transferred to a married woman is not a Hindu Mohammedan or a Buddhist.